Daily Price Action
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NZDUSD Caught Between Support and Resistance

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

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On Sunday I discussed a falling wedge on the NZDUSD that could trigger a move higher. The pair appears to have broken wedge resistance yesterday, but now buyers face a new challenge.

You may recall from Sunday’s forecast that I explained how a close above 0.6700 would expose 0.6850. I included 0.6700 because it’s a key horizontal level that dates back to early July.

We can see where buyers failed to close yesterday’s session (using a New York close chart) above 0.6700. That led to a retest of former wedge resistance earlier today near 0.6685.

That leaves the NZDUSD between former wedge resistance (new support) at 0.6685 and the 0.6700 horizontal resistance level.

From where I’m sitting, the market looks like it could turn bullish any moment. That said, nothing is confirmed until buyers secure a daily close above 0.6700. If you want to be on the safe side, you can draw that level at 0.6720 instead.

If buyers manage a close above 0.6700/20, it will expose 0.6850. This is a long-standing key level that dates back to 2010 but has become especially relevant since mid-May.

A daily close above 0.6850 would open the door to the falling wedge top at 0.7050 followed by 0.7170. Of course, the pair first needs to get past 0.6700/20 for any of the above to become possible.

On the other hand, a daily close back inside the falling wedge would negate the bullish potential. As of this writing, that level is near 0.6685.

The prudent move here, in my opinion, is to remain on the sideline until NZDUSD bulls clear the 0.6700/20 resistance area on a daily closing basis.

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NZDUSD falling wedge on daily chart

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9 comments
Dzunisani says

No premature executions here or else one will cry
Thanks for the analysis boss

I’m mixing BBMA and price action 👍🏽👌🏽🙌🏽

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Trond says

Thank you so much that you share all that for free. You are a good man:) I was new to forex in 2014 and only lost my money. And now you come in to my life. I have try to learn all on your site for a month. And all seem much better. I hope i can come a new member in your site.Have a nice evening or week 🙂

Reply
    Justin Bennett says

    You’re welcome.

    Reply
      Akeem says

      Thank very much for your analysis. I have been following the pair for some time now. Early this afternoon, i have marked the key level. Am following your lead coach.

      Reply
        Justin Bennett says

        You’re welcome. Happy to help.

        Reply
Sera says

Thanx Bennett

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Sera says

GBPJPY has closed way above 144.00 resistance. I believe we should now wait for a retest of our now new support and what should be our new resistance?

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Sera says

Oh my word….I can see the bulls are losing in NZDUSD😬

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